It will vary by case. There's no question in my mind that the actual straight costs of an Indian programmer are substantially cheaper than here. Yes, there's a lot of overhead associated with doing a project in India. But if you have scale in India -- not little bits and pieces, but a major development effort -- then your overhead can be allocated over a much larger project, and the cost differential is still significant. Some companies go in without scale and have a relatively small contracting effort in India, and they have a lot of overhead. They don't realize substantial cost savings.
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